8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2017

Apollo Commercial Real Estate Finance, Inc.

(Exact name of registrant as specified in its charter)

Maryland	001-34452	27-0467113
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

c/o Apollo Global Management, LLC 9 West 57th Street, 43rd Floor New York, New York	10019
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 515-3200

n/a

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 1, 2017, Apollo Commercial Real Estate Finance, Inc. (the “Company”) issued an earnings release announcing its financial results for the three and six months ended June 30, 2017. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

On August 1, 2017, the Company posted supplemental financial information on the Investor Relations section of its website (www.apolloreit.com). A copy of the supplemental financial information is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Earnings Release dated August 1, 2017
99.2	Supplemental Financial Information for the three and six months ended June 30, 2017

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Apollo Commercial Real Estate Finance, Inc.
By:	/s/ Stuart A. Rothstein
	Name: Stuart A. Rothstein
	Title: President and Chief Executive Officer

Date: August 1, 2017

Exhibit Index

Exhibit No.	Description
99.1	Earnings Release dated August 1, 2017
99.2	Supplemental Financial Information for the three and six months ended June 30, 2017

EX-99.1

Exhibit 99.1

CONTACT:	Hilary Ginsberg
	Investor Relations
	(212) 822-0767

APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. REPORTS

SECOND QUARTER 2017 FINANCIAL RESULTS

New York, NY, August 1, 2017 – Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today reported financial results for the quarter and six months ended June 30, 2017.

Second Quarter 2017 Highlights

• Reported net income available to common stockholders of $26.9 million, or $0.28 per diluted share of common stock, for the three months ended June 30, 2017, as compared to net income available to common stockholders of $4.5 million, or $0.06 per diluted share of common stock, for the three months ended June 30, 2016;

• Reported Operating Earnings (a non-GAAP financial measure defined below) of $44.6 million, or $0.46 per diluted share of common stock, for the three months ended June 30, 2017, as compared to Operating Earnings of $33.4 million, or $0.49 per diluted share of common stock, for the three months ended June 30, 2016;

• Generated $62.2 million of net interest income during the quarter from the Company’s $3.6 billion commercial real estate debt portfolio, which had a fully-levered weighted average underwritten internal rate of return (“IRR”)⁽¹⁾ of approximately 13.3% at June 30, 2017;

• Committed $107.9 million to new commercial real estate debt investments and funded an additional $29.4 million for loans closed prior to the quarter for the three months ended June 30, 2017; for the six months ended June 30, 2017, committed $558 million to new commercial real estate debt investments and funded a total of $145 million for loans closed prior to the period, for total capital commitment and deployment of approximately $703 million;

• Subsequent to quarter end, committed $162.5 million and £60.0 million to new commercial real estate debt investments and funded an additional $2.9 million for loans closed prior to the quarter;

• Completed an underwritten public offering of 13.8 million shares of common stock, including the full exercise of the underwriters’ option to purchase additional shares, raising net proceeds of approximately $249.0 million; and

• Declared a $0.46 dividend per share of common stock for the three months ended June 30, 2017.

“ARI has committed to over $800 million of commercial real estate debt investments year to date,” said Stuart Rothstein, Chief Executive Officer and President of ARI. “In recognition of the Company’s strong investment pipeline, coupled with favorable market conditions, ARI completed an accretive offering of shares of common stock during the quarter, raising net proceeds of approximately $249 million. We remain very confident in our ability to identify and deploy capital into commercial real estate debt investments with attractive, risk-adjusted returns.”

Second Quarter 2017 Operating Results

The Company reported net income available to common stockholders for the three months ended June 30, 2017 of $26.9 million, or $0.28 per diluted share of common stock, as compared to net income available to common stockholders of $4.5 million, or $0.06 per diluted share of common stock, for the three months ended June 30, 2016. Operating Earnings for the three months ended June 30, 2017 were $44.6 million, or $0.46 per diluted share of common stock, as compared to Operating Earnings of $33.4 million, or $0.49 per diluted share of common stock, for the three months ended June 30, 2016.

For the six months ended June 30, 2017, the Company reported net income available to common stockholders of $64.7 million, or $0.68 per diluted share of common stock, as compared to net income available to common stockholders of $17.3 million, or $0.24 per diluted share of common stock, for the six months ended June 30, 2016. Operating Earnings for the six months ended June 30, 2017 were $83.2 million, or $0.88 per diluted share of common stock, as compared to Operating Earnings of $63.3 million, or $0.93 per diluted share of common stock, for the six months ended June 30, 2016.    

Second Quarter 2017 Investment Activity

New Investments – During the second quarter, ARI committed capital to the following commercial real estate debt investments:

• $74.9 million of first mortgage loans ($74.9 million of which were funded during the quarter); and

• $33.0 million of subordinate loans ($28.0 million of which were funded during the quarter).

Funding of Previously Closed Loans – During the second quarter, ARI funded approximately $29.4 million for loans closed prior to the quarter.

Loan Repayments – During the second quarter, ARI received approximately $86.3 million from loan repayments.

Quarter End Commercial Real Estate Debt Portfolio Summary

The following table sets forth certain information regarding the Company’s commercial real estate debt portfolio at June 30, 2017 ($ amounts in thousands):

Description	Amortized Cost		Weighted Average Yield(2)			Debt		Cost of Funds			Equity at Cost		Current Weighted Average Underwritten IRR (1)(2)			Fully- Levered Weighted Average Underwritten IRR(1)(2)(3)
First mortgage loans	$	2,037,971		7.3	%	$	1,096,084		3.6	%	$	941,887		11.3	%		14.1	%
Subordinate loans		1,240,363		13.5			—		—			1,240,363		13.5			13.5
CMBS(4)		293,312		4.3			244,170		3.3			106,806		4.3			4.3
Total/Weighted
Average	$	3,571,646		9.2	%	$	1,340,254		3.5	%	$	2,289,056		12.2	%		13.3	%

Please see chart footnotes at the end of the press release.

Loan-to-Value

At June 30, 2017, the Company’s commercial real estate loan portfolio had a weighted average loan-to-value (“LTV”) of 64%. Within the commercial real estate loan portfolio, the first mortgage loans had a weighted average LTV of 63% and the subordinate loans had a weighted average LTV of 65%.    

Book Value

The Company’s book value per share of common stock was $16.16 at June 30, 2017, as compared to book value per share of common stock of $16.05 at March 31, 2017.    

Subsequent Events

The following events occurred subsequent to quarter end:

New Investments

Subsequent to the end of the second quarter, ARI committed capital to the following commercial real estate debt investments:

• $125.0 million and £60.0 million of first mortgage loans, $125.0 million and £32.2 million of which were funded; and

• $37.5 million subordinate loan, all of which was funded.

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Funding of Previously Closed Loans – ARI funded approximately $2.9 million for previously closed loans.

Loan Repayments – ARI received approximately $50.4 million from loan repayments.

Sale of CMBS – ARI received approximately $60 million in proceeds from sales and principal pay downs from two CMBS.

Redemption of Preferred Stock – ARI announced that it will redeem all 3,450,000 issued and outstanding shares of its 8.625% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) on August 2, 2017 (the “Redemption Date”). The shares of Series A Preferred Stock will be redeemed at the redemption price of $25.00 per share, plus a dividend in an amount of $0.1079 per share, representing all accumulated and unpaid dividends to, but not including, the Redemption Date. On the Redemption Date, dividends on the Series A Preferred Stock will cease to accrue.

Operating Earnings

Operating Earnings is a non-GAAP financial measure that is defined by the Company as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding); (ii) any unrealized gains or losses or other non-cash items included in net income available to common stockholders; (iii) unrealized income from unconsolidated joint ventures; (iv) foreign currency gains/(losses) other than realized gains/(losses) related to interest income; (v) the non-cash amortization expense related to the reclassification of a portion of the convertible senior notes to stockholders’ equity in accordance with GAAP; and (vi) provision for loan losses and impairments. Operating Earnings may also be adjusted to exclude certain other non-cash items, as determined by ACREFI Management, LLC, the Company’s external manager, and approved by a majority of the Company’s independent directors.

In order to evaluate the effective yield of the portfolio, the Company uses Operating Earnings to reflect the net investment income of the Company’s portfolio as adjusted to include the net interest expense related to the Company’s derivative instruments. Operating Earnings allows the Company to isolate the net interest expense associated with the Company’s swaps in order to monitor and project the Company’s full cost of borrowings. The Company also believes that investors use Operating Earnings or a comparable supplemental performance measure to evaluate and compare the performance of the Company and its peers and, as such, the Company believes that the disclosure of Operating Earnings is useful to its investors.

A significant limitation associated with Operating Earnings as a measure of the Company’s financial performance over any period is that it excludes net realized and unrealized gains (losses) from investments. In addition, the Company’s presentation of Operating Earnings may not be comparable to similarly-titled measures of other companies, who may use different calculations. As a result, Operating Earnings should not be considered as a substitute for the Company’s GAAP net income as a measure of its financial performance or any measure of its liquidity under GAAP.

Beginning with the quarter ended September 30, 2016, the Company slightly modified its definition of Operating Earnings to include realized gains/(losses) on currency swaps related to interest income on investments denominated in a currency other than U.S. dollars. The Company believes that including the effects of realized gains/(losses) on currency swaps related to interest income more accurately reflects the Company’s investment income for a particular period and will allow investors to more easily compare its operating results over various periods. The effects of such unrealized gains/(losses) in prior periods were not material to the Company’s financial results. The Company intends to apply this modified definition for Operating Earnings for all future periods.

Reconciliation of Operating Earnings to Net Income Available to Common Stockholders

The table below reconciles Operating Earnings and Operating Earnings per share of common stock with net income available to common stockholders and net income available to common stockholders per share of common stock for the three and six months ended June 30, 2017 and June 30, 2016:

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($ amounts in thousands, except per share data)

	Three Months Ended June 30, 2017			Earnings Per Share (Diluted)			Three Months Ended June 30, 2016			Earnings Per Share (Diluted)
Operating Earnings:
Net income available to common stockholders	$	26,925		$	0.28		$	4,478		$	0.06
Adjustments:
Equity-based compensation expense		3,461			0.04			1,938			0.03
Unrealized loss on securities		4,510			0.05			11,728			0.17
Provision for loan losses and impairments		5,000			0.05			15,000			0.22
Unrealized (gain)/loss on derivative instruments		7,389			0.08			(13,313	)		(0.19	)
Foreign currency(gain)/ loss, net		(6,958	)		(0.08	)		13,082			0.19
Amortization of convertible senior notes related to equity reclassification		618			0.01			582			0.01
(Income)/loss from unconsolidated joint venture		3,305			0.03			(59	)		—
Realized gain from unconsolidated joint venture		346			—			—			—
Total adjustments:		17,671			0.18			28,958			0.43
Operating Earnings	$	44,596			0.46		$	33,435		$	0.49
Basic weighted average shares of common stock outstanding:		95,428,134						67,402,311
Diluted weighted average shares of common stock outstanding:		96,796,289						68,374,557
	Six Months Ended June 30, 2017			Earnings Per Share (Diluted)			Six Months Ended June 30, 2016			Earnings Per Share (Diluted)
Operating Earnings:
Net income available to common stockholders	$	64,739		$	0.68		$	17,281		$	0.24
Adjustments:
Equity-based compensation expense		7,252			0.08			3,606			0.06
Unrealized loss on securities		1,658			0.02			26,802			0.39
Provision for loan losses and impairments		5,000			0.05			15,000			0.22
Unrealized (gain)/loss on derivative instruments		10,434			0.12			(18,015	)		(0.26	)
Foreign currency (gain)/loss, net		(10,284	)		(0.11	)		17,557			0.26
Amortization of convertible senior notes related to equity reclassification		1,226			0.01			1,154			0.02
(Income)/loss from unconsolidated joint venture		2,847			0.03			(127	)		—
Realized gain from unconsolidated joint venture		346			—			—			—
Total adjustments:		18,479			0.20			45,977			0.69
Operating Earnings	$	83,218		$	0.88		$	63,258		$	0.93
Basic weighted average shares of common stock outstanding:		93,530,831						67,393,751
Diluted weighted average shares of common stock outstanding:		94,907,762						68,351,137

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Teleconference Details:

The Company will host a conference call to discuss its financial results on Wednesday, August 2, 2017 at 9:00 a.m. Eastern Time. Members of the public who are interested in participating in the Company’s second quarter 2017 earnings teleconference call should dial from the U.S., (877) 331-6553, or from outside the U.S., (760) 666-3769, shortly before 9:00 a.m. and reference the Apollo Commercial Real Estate Finance, Inc. Teleconference Call (number 46710831). Please note the teleconference call will be available for replay beginning at 1:00 p.m. on Wednesday, August 2, 2017 and ending at midnight on Wednesday, August 9, 2017. To access the replay, callers from the U.S. should dial (855) 859-2056 and callers from outside the U.S. should dial (404) 537-3406, and enter conference identification number 46710831.

Webcast:

The conference call will also be available on the Company’s website at www.apolloreit.com. To listen to a live broadcast, please go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will also be available for 30 days on the Company’s website.

Supplemental Information

The Company provides supplemental financial information to offer more transparency into its results and make its reporting more informative and easier to follow. The supplemental financial information is available in the investor relations section of the Company’s website at www.apolloreit.com.

About Apollo Commercial Real Estate Finance, Inc.

Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial real estate mortgage loans, subordinate financings, CMBS and other commercial real estate-related debt investments. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, LLC, a leading global alternative investment manager with approximately $197.5 billion of assets under management as of March 31, 2017.    

Additional information can be found on the Company’s website at www.apolloreit.com.

Dividend Reinvestment Plan

The Company adopted a Direct Stock Purchase and Dividend Reinvestment Plan (the “Plan”). The Plan provides new investors and existing holders of the Company’s common stock with a convenient and economical method to purchase shares of its common stock. By participating in the Plan, participants may purchase additional shares of the Company’s common stock by reinvesting some or all of the cash dividends received on their shares of the Company’s common stock. In addition, the Plan permits participants to make optional cash investments of up to $10,000 per month, and, with the Company’s prior approval, optional cash investments in excess of $10,000 per month, for the purchase of additional shares of the Company’s common stock.    

The Plan is administered by a division of Wells Fargo Bank, N.A. (“Wells”). Stockholders and other persons may obtain a copy of the Plan prospectus and an enrollment form by contacting Wells at (800) 468-9716 or (651) 450-4064, if outside the United States, or visiting Wells’ website at www.shareowneronline.com.    

This communication does not constitute an offer to sell or the solicitation of an offer to buy securities.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target assets; and risks associated with investing in real estate assets, including changes in business conditions and the general

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economy. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Footnotes ($ in thousands):

(1) IRR is the annualized effective compounded return rate that accounts for the time-value of money and represents the rate of return on an investment over a holding period expressed as a percentage of the investment. It is the discount rate that makes the net present value of all cash outflows (the costs of investment) equal to the net present value of cash inflows (returns on investment). It is derived from the negative and positive cash flows resulting from or produced by each transaction (or for a transaction involving more than one investment, cash flows resulting from or produced by each of the investments), whether positive, such as investment returns, or negative, such as transaction expenses or other costs of investment, taking into account the dates on which such cash flows occurred or are expected to occur, and compounding interest accordingly. The underwritten IRR for the investments shown in this press release reflect the returns underwritten by ACREFI Management, LLC, the Company’s external manager, taking into account leverage and calculated on a weighted average basis assuming no dispositions, early prepayments or defaults but assuming that extension options are exercised and that the cost of borrowings remains constant over the remaining term. With respect to certain loans, the underwritten IRR calculation assumes certain estimates with respect to the timing and magnitude of future fundings for the remaining commitments and associated loan repayments, and assumes no defaults. There can be no assurance that the actual IRRs will equal the underwritten IRRs shown in the table. See “Item 1A – Risk Factors — The Company may not achieve its underwritten internal rate of return on its investments which may lead to future returns that may be significantly lower than anticipated.” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for a discussion of some of the factors that could adversely impact the returns received by the Company from the investments shown in the table or elsewhere in the Company’s Annual Report over time.

(2) Beginning this quarter, and going forward, both the weighted average yields and the weighted average IRRs in the chart above reflect LIBOR at quarter end. Historically, ARI reported weighted average yields and weighted average underwritten IRRs reflecting the forward LIBOR curve.

(3) The Company’s ability to achieve the underwritten levered weighted average IRR depends upon the availability of the JPMorgan Facility or any replacement facility with similar terms with regard to its portfolio of first mortgage loans. Without such availability, the levered weighted average underwritten IRR will be lower than the amount shown above.

(4) CMBS’ Equity at Cost includes $57.7 million of restricted cash related to the Company’s repurchase facilities with UBS AG and Deutsche Bank, AG.

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Apollo Commercial Real Estate Finance, Inc. and Consolidated Subsidiaries

Condensed Consolidated Balance Sheets (in thousands—except share and per share data)    

	June 30, 2017			December 31, 2016
	(unaudited)
Assets:
Cash and cash equivalents	$	214,016		$	200,996
Restricted cash		57,665			62,457
Securities, at estimated fair value		254,484			331,076
Securities, held-to-maturity		—			146,352
Commercial mortgage loans, held for investment, net		2,037,971			1,641,856
Subordinate loans, held for investment, net		1,240,363			1,051,236
Investment in unconsolidated joint venture		—			22,103
Derivative assets, net		—			5,906
Interest receivable		21,998			19,281
Other assets, net		40			1,714
Total Assets	$	3,826,537		$	3,482,977
Liabilities and Stockholders’ Equity
Liabilities:
Borrowings under repurchase agreements (net of deferred financing costs of $9,345 and $6,763 in 2017 and 2016, respectively)	$	1,330,909		$	1,139,803
Convertible senior notes, net		250,949			249,994
Participations sold		—			84,979
Derivative liabilities, net		4,435			—
Accounts payable, accrued expenses and other liabilities		12,346			17,681
Payable to related party		7,742			7,015
Dividends payable		57,464			51,278
Total Liabilities	$	1,663,845			1,550,750
Commitments and Contingencies (See Note 14)
Stockholders’ Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized:
Series A Preferred stock, 3,450,000 shares issued and outstanding ($86,250 aggregate liquidation preference) in 2017 and 2016		35			35
Series B Preferred stock, 8,000,000 shares issued and outstanding ($200,000 aggregate liquidation preference) in 2017 and 2016		80			80
Series C Preferred stock, 6,900,000 shares issued and outstanding ($172,500 aggregate liquidation preference) in 2017 and 2016		69			69
Common stock, $0.01 par value, 450,000,000 shares authorized, 105,437,919 and 91,422,676 shares issued and outstanding in 2017 and 2016, respectively		1,054			914
Additional paid-in-capital		2,236,694			1,983,010
Retained earnings (accumulated deficit)		(75,240	)		(48,070	)
Accumulated other comprehensive loss		—			(3,811	)
Total Stockholders’ Equity		2,162,692			1,932,227
Total Liabilities and Stockholders’ Equity	$	3,826,537		$	3,482,977

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Apollo Commercial Real Estate Finance, Inc. and Consolidated Subsidiaries

Condensed Consolidated Statement of Operations

(in thousands—except share and per share data)

	Three months ended						Six months ended
	June 30,						June 30,
	2017			2016			2017			2016
Net interest income:
Interest income from securities	$	3,366		$	7,607		$	6,622		$	15,656
Interest income from securities, held to maturity		1,334			2,826			4,132			5,722
Interest income from commercial mortgage loans		37,089			24,140			71,487			45,267
Interest income from subordinate loans		39,640			28,067			74,030			57,442
Interest expense		(19,205	)		(15,722	)		(36,235	)		(30,364	)
Net interest income		62,224			46,918			120,036			93,723
Operating expenses:
General and administrative expenses (includes $3,461 and $7,252 of equity-based compensation in 2017 and $1,938 and $3,606 in 2016, respectively)		(5,200	)		(4,922	)		(10,958	)		(13,104	)
Management fees to related party		(7,742	)		(5,242	)		(15,175	)		(10,471	)
Total operating expenses		(12,942	)		(10,164	)		(26,133	)		(23,575	)
Income/(loss) from unconsolidated joint venture		(3,305	)		59			(2,847	)		127
Other income		244			22			352			25
Provision for loan losses and impairments		(5,000	)		(15,000	)		(5,000	)		(15,000	)
Realized loss on sale of assets		—			—			(1,042	)		—
Unrealized loss on securities		(4,510	)		(11,728	)		(1,658	)		(26,802	)
Foreign currency gain/(loss)		6,913			(13,082	)		10,085			(17,557	)
Gain/(loss) on derivative instruments (includes unrealized gains/(losses) of $(7,435) and $(10,324) in 2017 and $13,408 and $12,026 in 2016, respectively)		(7,389	)		13,313			(10,434	)		18,015
Net income		36,235			10,338			83,359			28,956
Preferred dividend		(9,310	)		(5,860	)		(18,620	)		(11,675	)
Net income available to common stockholders	$	26,925		$	4,478		$	64,739		$	17,281
Basic and diluted net income per share of common stock	$	0.28		$	0.06		$	0.68		$	0.24
Basic weighted average shares of common stock outstanding		95,428,134			67,402,311			93,530,831			67,393,751
Diluted weighted average shares of common stock outstanding		96,796,289			68,374,557			94,907,762			68,351,137
Dividend declared per share of common stock	$	0.46		$	0.46		$	0.92		$	0.92

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EX-99.2

Exhibit 99.2

Supplemental Financial Information Package – Q2 2017 August 1, 2017 Information is as of June 30, 2017, except as otherwise noted.    It should not be assumed that investments made in the future will be profitable or will equal the performance of investments in this document.    

Forward Looking Statements and Other Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond management’s control. These forward-looking statements may include information about possible or assumed future results of Apollo Commercial Real Estate Finance, Inc.’s (“ARI” or the “Company”) business, financial condition, liquidity, results of operations, plans and objectives. When used in this presentation, the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: ARI’s business and investment strategy; ARI’s operating results; ARI’s ability to obtain and maintain financing arrangements; and the return on equity, the yield on investments and risks associated with investing in real estate assets including changes in business conditions and the general economy. The forward-looking statements are based on management’s beliefs, assumptions and expectations of future performance, taking into account all information currently available to ARI. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to ARI. Some of these factors are described under “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in ARI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and other filings with the Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. If a change occurs, ARI’s business, financial condition, liquidity and results of operations may vary materially from those expressed in ARI’s forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for management to predict those events or how they may affect ARI. Except as required by law, ARI is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation contains information regarding ARI’s financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), including Operating Earnings and Operating Earnings per share. Please refer to slide 18 for a definition of “Operating Earnings” and the reconciliation of the applicable GAAP financial measures to non-GAAP financial measures set forth on slides 16 and 17. This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third-party service providers. ARI makes no representation or warranty, expressed or implied, with respect to the accuracy, reasonableness or completeness of such information. Past performance is not indicative nor a guarantee of future returns. Index performance and yield data are shown for illustrative purposes only and have limitations when used for comparison or for other purposes due to, among other matters, volatility, credit or other factors (such as number and types of securities). Indices are unmanaged, do not charge any fees or expenses, assume reinvestment of income and do not employ special investment techniques such as leveraging or short selling. No such index is indicative of the future results of any investment by ARI. 1

Q2 Highlights ? Net income available to common stockholders of $26.9 million, or $0.28 per diluted share of common stock ? Operating Earnings(1) of $44.6 million, or $0.46 per diluted share of common stock Earnings Net interest income of $62.2 million ? ? Total expenses of $12.9 million, comprised of management fees of $7.7 million, G&A of $1.7 million and equity-based compensation of $3.5 million    Dividend ? Common stock dividend of $0.46 per share ? 10.2% annualized dividend yield based on $18.03 closing price on July 31, 2017 ? Total investment portfolio of $3.6 billion ? Fully levered weighted average underwritten IRR(2) of ~13.3% Portfolio ? Weighted average LTV of 64% ? Weighted average term of 2.8 years ? 90% of the loans having floating interest rates ? Completed underwritten public offering of 13.8 million shares of common stock, including the full exercise of the underwriters’ option to purchase additional shares, raising net Capitalization proceeds of $249 million ? Subsequent to quarter end, ARI announced the redemption of all of the $86.25 million of the Company’s 8.625% Series A Cumulative Redeemable Perpetual Preferred Stock    See footnotes on page 18 2

Financial Summary Income Statement ($ in millions, except per share amounts) 2Q17 2Q16 % Change Net Interest Income $62.2 $46.9 32.6% Net Income Available to Common Stockholders 26.9 4.5 497.8% W.A Diluted Shares Outstanding 97 68 42.6% Net Income Available to Common Stockholders per Diluted Share $0.28 $0.06 366.7% Operating Earnings(1) $44.6 $33.4 33.5% Operating Earnings per Diluted Share(1) $0.46 $0.49 (6.1%) Balance Sheet 1c 2Q17 4Q16 % Change    Investments at Amortized Cost $3,572 $3,123 14.3% Net Equity in Investments at Cost $2,289 $2,039 12.3% Common Stockholders’ Equity 1,704 1,473 15.7% Preferred Stockholders’ Equity (liquidation preference) 459 459—Outstanding Repurchase Agreement Borrowings(3) 1,331 1,140 16.8% Convertible Senior Notes 251 250 0.4% Debt to Common Equity(4) 0.9x 1.0x Fixed Charge Coverage(5) 2.3x 2.7x

Q2 Investment Activity 2Q17 Acquisition and Origination Highlights 1H17 Acquisition and Origination Highlights ($ in millions) ($ in millions) 3 Loans Closed 10 Loans Closed $108 Commitments to New Loans $558 Commitments to New Loans $103 Funding New Loans $479 Funding New Loans 54% Weighted Average LTV 62% Weighted Average LTV 15% Weighted Average Levered IRR(2)(7) 14% Weighted Average Levered IRR(2)(7) $29 Additional Funding $145 Additional Funding See footnotes on page 18 4

Q2 – New Investments Overview Loan Position Geography West 8% Subordinate New York City Loans 23% 31% First Mortgages United 69% 69% Property Type Rate Type Fixed Rate 8% Residential-for sale 23% Hotel 8% Urban Retail/Pre-development 69% Floating Rate 92%

Commercial Real Estate Loan Portfolio Overview 2Q17 1Q17 Number of Loans 52 Loans 51 Loans Amortized Cost $3,278,334 $3,212,519 Net Equity at Cost $2,182,250 $1,970,757 Unfunded Loan Commitments(6) $119,813 $121,470 Current Weighted Average Underwritten (2) 12.6% 14.0% IRR Fully Levered Weighted Average (2)(7) 13.8% 14.0% Underwritten IRR Remaining Weighted Average Life(8) 2.8 Years 3.0 Years Weighted Average LTV 64% 63% Loan Position at Amortized Cost Loan Position by Net Equity at Amortized Cost First Mortgage Subordinate Loans Loans 38% 43% First Mortgage Subordinate Loans Loans 57% 62% See footnotes on page 18 6

Commercial Real Estate Loan Portfolio Overview Property Type by Net Equity Geographic Diversification by Net Equity Other (9) Southwest Other    International Retail Center 2% 3% 4% Industrial 3% Northeast 5% Residential—for 5% sale West Mixed Use 25% 8% 6% Mid Atlantic 7% Healthcare 8% New York City 44% Hotel United Kingdom Office 16% 9% 8% Southeast Residential -Urban Retail 11% Rental Predevelopment 10% Midwest 14% 12% Loan Position and Rate Type by Amortized Cost(10) Subordinate Loan Fixed 5% 90% Floating Rate Subordinate Loan Floating 33% Senior Loan Floating 57% Senior Loan    See footnotes on page 18 Fixed 5% 7

Commercial Real Estate Loan Portfolio Maturity Profile Fully Extended Loan Maturities and Future Fundings(10)(11)(12) ($ in millions) $1,000 $947.2    $900 $800 $755.1 $700 $600 $575.7    $500 $400 $371.5    $318.7 $300 $226.5 $200 $98.6 $100 $32.0    $50.5 $20.9 $25.0    $-    $-    $0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Fully extended maturity Future funding commitment See footnotes on page 18 8

Commercial Real Estate Loan Portfolio LTVs Loan Portfolio at Amortized Cost Across LTVs(13) ($ in millions) $1,600 100% $1,500 90% $1,400 $1,300 80% $1,200 MM $1,100 70% in $1,000 60% $ $900 Cost $800 50% Concentration $700 40% Amortized $600 Portfolio $500 30% $400 $300 20% $200 $100 10%—0% 0%-40% 40%-50% 50%-60% 60%-70% 70%-80% 80%-90% 90%-100% LTVs Weighted Average LTV— 64% See footnotes on page 18 9

CMBS Portfolio CUSIP Description 14986DAJ9 CD 2006-CD3 AJ 17311QBN9 CGCMT 2007-C6 AJ 17313KAK7 CGCMT 2008-C7 AJ 50180CAG5 LBUBS 2006-C7 AJ 60688CAJ5 MLCFC 2007-9 AJ 05947US25 BACM 2005-3 AJ 61756UAJ0 MSC 2007-1Q16 AJ 46629YAH2 JPMCC 2007-CB18AJ 17311QAE0 CGCMT 2007-C6 AJFX    CUSIP Description 59025KAG7 MLMT 2007-C1 AM 22546BAH3 CSMC 2007-C5 AM 36159XAH3 GECMC 2007-C1 AM 46627QBC1 JMPCC 2006-CB15 AM    ($ in millions) Remaining Weighted Average Life with Estimated Fair Net Equity at Face Amortized Cost Extensions (years) Value Debt Cost(14)    CMBS – Total $300.1 $293.3 2.3 Years $254.5 $244.2 $106.8 See footnotes on page 18 10

Capital Structure Overview Facility Maximum Size Outstanding Balance Maturity (15) W/A Rate(16) Loans JPMorgan(17) $1,118,000 $794,404 Mar-20 L+2.26% Deutsche Bank 563,813 263,980 Mar-20 L+2.56% Secured Credit Facilities Goldman Sachs 52,524 37,700 Apr-19 L+3.50% $1.3 Billion Outstanding Subtotal $1,734,337 $1,096,084 L+2.37% Securities 3.53% W/A Rate UBS $133,899 $100,798 Sep-18 2.77% Deutsche Bank 300,000 143,372 Apr-18 3.59% Subtotal $433,899 $244,170 3.25% Less Deferred Finacing Costs N/A (9,345) Total Borrowings at June 30, 2017 $2,168,236 $1,330,909 3.53% 5.50% Convertible Notes ? Convertible to common stock – conversion ratio of 56.7586 ($17.62 effective conversion price) $251 Million ? Matures in March 2019 ? Series A ($86.25mm): publicly sold in July 2012; 8.625% rate, redeemed in August 2017 Series A, Series B & Series C ? Series B ($200mm): privately placed in September 2015; fixed at an 8.00% rate for 5 years and then Cumulative Preferred Stock floating at the greater of 3m LIBOR plus 6.46% or 8.00%, callable September 2020 $459 Million ? Series C ($172.50mm): assumed from AMTG transaction in August 2016, originally issued in September 2012; 8.00% rate, callable September 2017 ? 105,437,919 shares issued and outstanding at June 30, 2017 Common Stock ? 10.2% dividend yield(18) $1.7 Billion    Debt to Common Equity Ratio(4): 0.9x Fixed Charge Coverage(5): 2.3x See footnotes on page 18 11

Interest Rate Sensitivity Variable Rate Investments and Liabilities(19) Net Interest Income Sensitivity to LIBOR(20) ($ in millions) $0.18    ($1,096) $0.13    $0.09 $2,969    $1,873 $0.04    Variable Assets Variable Liabilities Net Equity in Variable 0.25% 0.50% 0.75% 1.00% Rate Assets See footnotes on page 18 12

Financials

Consolidated Balance Sheets (in thousands—except share and per share data) June 30, 2017 December 31, 2016 Assets: Cash and cash equivalents $ 214,016 $ 200,996 Restricted cash 57,665 62,457 Securities, at estimated fair value 254,484 331,076 Securities, held-to-maturity - 146,352 Commercial mortgage loans, held for investment, net 2,037,971 1,641,856 Subordinate loans, held for investment, net 1,240,363 1,051,236 Investment in unconsolidated joint venture - 22,103 Derivative assets, net - 5,906 Interest receivable 21,998 19,281 Other assets, net 40 1,714 Total Assets $ 3,826,537 $ 3,482,977 Liabilities and Stockholders’ Equity Liabilities: Borrowings under repurchase agreements (net of deferred financing costs of $9,345 and $6,763 in 2017 and 2016, respectively) $ 1,330,909 $ 1,139,803 Convertible senior notes, net 250,949 249,994 Participations sold - 84,979 Derivative liabilities, net 4,435 - Accounts payable, accrued expenses and other liabilities 12,346 17,681 Payable to related party 7,742 7,015 Dividends payable 57,464 51,278 Total Liabilities 1,663,845 1,550,750 Commitments and Contingencies (See Note 14) Stockholders’ Equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized: Series A Preferred stock, 3,450,000 shares issued and outstanding ($86,250 aggregate liquidation preference) in 2017 and 2016 35 35 Series B Preferred stock, 8,000,000 shares issued and outstanding ($200,000 aggregate liquidation preference) in 2017 and 2016 80 80 Series C Preferred stock, 6,900,000 shares issued and outstanding ($172,500 aggregate liquidation preference) in 2017 and 2016 69 69 Common stock, $0.01 par value, 450,000,000 shares authorized 105,437,919 and 91,422,676 shares issued and outstanding in 2017 and 2016, respectively 1,054 914 Additional paid-in-capital 2,236,694 1,983,010 Retained earnings (accumulated deficit) (75,240) (48,070) Accumulated other comprehensive loss - (3,811) Total Stockholders’ Equity 2,162,692 1,932,227 Total Liabilities and Stockholders’ Equity $ 3,826,537 $ 3,482,977 14

Consolidated Statements of Operations Three months ended Six months ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Net interest income: Interest income from securities $ 3,366 $ 7,607 $ 6,622 $ 15,656 Interest income from securities, held to maturity 1,334 2,826 4,132 5,722 Interest income from commercial mortgage loans 37,089 24,140 71,487 45,267 Interest income from subordinate loans 39,640 28,067 74,030 57,442 Interest expense (19,205) (15,722) (36,235) (30,364) Net interest income 62,224 46,918 120,036 93,723 Operating expenses: General and administrative expenses (includes $3,461 and $7,252 of equity-based compensation in 2017 and $1,938 and $3,606 in 2016, respectively) (5,200) (4,922) (10,958) (13,104) Management fees to related party (7,742) (5,242) (15,175) (10,471) Total operating expenses (12,942) (10,164) (26,133) (23,575) Income/(loss) from unconsolidated joint venture (3,305) 59 (2,847) 127 Other income 244 22 352 25 Provision for loan losses and impairments (5,000) (15,000) (5,000) (15,000) Realized loss on sale of assets - - (1,042) - Unrealized loss on securities (4,510) (11,728) (1,658) (26,802) Foreign currency gain/(loss) 6,913 (13,082) 10,085 (17,557) Gain/(loss) on derivative instruments (includes unrealized gains/(losses) of $(7,435) and $(10,324) in 2017 and $13,408 and $12,026 in 2016, respectively) (7,389) 13,313 (10,434) 18,015 Net income $ 36,235 $ 10,338 $ 83,359 $ 28,956 Preferred dividends (9,310) (5,860) (18,620) (11,675) Net income available to common stockholders $ 26,925 $ 4,478 $ 64,739 $ 17,281 Basic and diluted net income per share of common stock $ 0.28 $ 0.06 $ 0.68 $ 0.24 Basic weighted average shares of common stock outstanding 95,428,134 67,402,311 93,530,831 67,393,751 Diluted weighted average shares of common stock outstanding 96,796,289 68,374,557 94,907,762 68,351,137 Dividend declared per share of common stock $ 0.46 $ 0.46 $ 0.92 $ 0.92 15

Reconciliation of GAAP Net Income to Operating Earnings(1) Three Months Ended Earnings Per Share    Earnings Per Share June 30, 2017 (Diluted) June 30, 2016 (Diluted) Operating Earnings: Net income available to common stockholders $ 26,925 $ 0.28 $ 4,478 $ 0.06 Adjustments: Equity-based compensation expense 3,461 0.04 1,938 0.03 Unrealized loss on securities 4,510 0.05 11,728 0.17 Provision for loan losses and impairments 5,000 0.05 15,000 0.22 Unrealized (gain)/loss on derivative instruments 7,389 0.08 (13,313) (0.19) Foreign currency (gain)/loss, net (6,958) (0.08) 13,082 0.19 Amortization of convertible senior notes related to equity reclassification 618 0.01 582 0.01 (Income)/loss from unconsolidated joint venture 3,305 0.03 (59) - Realized gain from unconsolidated joint venture 346 - - - Total adjustments: 17,671 0.18 28,958 0.43 Operating Earnings $ 44,596 $ 0.46 $ 33,435 $ 0.49 Basic weighted average shares of common stock outstanding    95,428,134    67,402,311 Diluted weighted average shares of common stock outstanding    96,796,289    68,374,557 See footnotes on page 18                16

Reconciliation of GAAP Net Income to Operating Earnings(1)                Six Months Ended                Earnings Per Share    Earnings Per Share June 30, 2017 (Diluted) June 30, 2016 (Diluted) Operating Earnings:                Net income available to common stockholders $ 64,739 $ 0.68 $ 17,281 $ 0.24 Adjustments:                Equity-based compensation expense 7,252 0.08 3,606 0.06 Unrealized loss on securities 1,658 0.02 26,802 0.39 Provision for loan losses and impairments 5,000 0.05 15,000 0.22 Unrealized (gain)/loss on derivative instruments 10,434 0.12 (18,015) (0.26) Foreign currency (gain)/loss, net (10,284) (0.11) 17,557 0.26 Amortization of convertible senior notes related to equity reclassification 1,226 0.01 1,154 0.02 (Income)/loss from unconsolidated joint venture 2,847 0.03 (127) - Realized gain from unconsolidated joint venture 346 - - - Total adjustments: 18,479 0.20 45,977 0.69 Operating Earnings $ 83,218 $ 0.88 $ 63,258 $ 0.93 Basic weighted average shares of common stock outstanding    93,530,831    67,393,751 Diluted weighted average shares of common stock outstanding    94,907,762    68,351,137 See footnotes on page 18                17

Footnotes (1) Operating Earnings is a non-GAAP financial measure that is used by the Company to approximate cash available for distribution and is defined by the Company as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding); (ii) any unrealized gains or losses or other non-cash items included in net income available to common stockholders, (iii) unrealized income from unconsolidated joint ventures, (iv) foreign currency gains/losses, other than realized gains/(losses) related to interest income; (v) the non-cash amortization expense related to the reclassification of a portion of the convertible senior notes to stockholders’ equity in accordance with GAAP; and (vi) provision for loan losses and impairments. Please see slides 16 and 17 for a reconciliation of GAAP net income and GAAP net income per share to Operating Earnings and Operating Earnings per Share. Operating Earnings may also be adjusted to exclude certain other non-cash items, as determined by the Manager and approved by a majority of the Company’s independent directors. (2) Internal rate of return (“IRR”) is the annualized effective compounded return rate that accounts for the time-value of money and represents the rate of return on an investment over a holding period expressed as a percentage of the investment. It is the discount rate that makes the net present value of all cash outflows (the costs of investment) equal to the net present value of cash inflows (returns on investment). It is derived from the negative and positive cash flows resulting from or produced by each transaction (or for a transaction involving more than one investment, cash flows resulting from or produced by each of the investments), whether positive, such as investment returns, or negative, such as transaction expenses or other costs of investment, taking into account the dates on which such cash flows occurred or are expected to occur, and compounding interest accordingly. The underwritten IRR for the investments shown in the table reflect the returns underwritten by the Manager, taking into account leverage and calculated on a weighted average basis assuming no dispositions, early prepayments or defaults but assuming that extension options are exercised and that the cost of borrowings remains constant over the remaining term. With respect to certain loans, the underwritten IRR calculation assumes certain estimates with respect to the timing and magnitude of future fundings for the remaining commitments and associated loan repayments, and assumes no defaults. There can be no assurance that the actual IRRs will equal the underwritten IRRs shown in the presentation. See “Item 1A-Risk Factors-The Company may not achieve its underwritten internal rate of return on its investments which may lead to future returns that may be significantly lower than anticipated” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for a discussion of some of the factors that could adversely impact the returns received by the Company from the investments shown in the table or elsewhere in this presentation over time. (3) Total balance less $9,345 and $6,737 in Q2 2017and Q4 2016, respectively ,in deferred financing costs. (4) Debt to common equity is net of participations sold. (5) Fixed charge coverage is EBITDA divided by interest expense plus the preferred stock dividends. (6) Unfunded loan commitments are for loans that were previously closed but have yet to be funded. (7) Represents an underwritten levered weighted average IRR. The Company’s ability to achieve the underwritten levered weighted average IRR additionally depends upon the availability of the Company’s master repurchase agreement with JPMorgan Chase Bank, N.A. (the JPMorgan Facility”) or any replacement facility with similar terms with regard to its portfolio of first mortgage loans.    Without such availability, the levered weighted average underwritten IRR will be lower than the amount shown. (8) Remaining Weighted Average Life assumes all extension options are exercised. (9) Other includes a data center and water park resorts. (10) Based upon face amount of loans. (11) Maturities reflect the fully funded amounts of the loans.    (12) Future funding dates are based upon the Manager’s estimates based upon the best information available to the Manager at the time. There is no assurance that the payments will occur in accordance with these estimates or at all,which could affect the Company’s operating results. (13) LTV’s are as of the date of loan origination. (14) Includes $57.7 million of restricted cash related to the UBS Facility and the DB CMBS Facility. (15) Assumes extension options are exercised.    (16) Assumes one-month LIBOR at June 30, 2017 was 1.12%. (17) The debt balance as of June 30, 2017, includes $143 million of borrowings for the first mortgage loans secured by an assemblage of properties in the Design District of Miami that does not count toward the maximum capacity under the JPMorgan Facility. (18) Based upon the $1.84 annualized dividend per share of common stock and the closing stock price on July 31, 2017. (19) Based upon face amount. (20) Based upon the Company’s portfolio as of June 30, 2017; any such hypothetical impact on interest rates on the Company’s variable rate borrowings does not consider the effect of any change in overall economic activity that could occur in a rising interest rate environment. Further, in the event of a change in interest rates of that magnitude, the Company may take actions to further mitigate the Company’s exposure to such a change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, this analysis assumes no changes in the Company’s financial structure. 18